Hanging on the Edge

According to our CNN source at the bottom of the page this morning, the US is precariously balanced on the edge of the fiscal cliff.

Movement away from the cliff began when the Democratic Party controlled Senate voted overwhelmingly for a package of measures that would remove some of the uncertainties about the health of the country's deficit. It is now up to the Republican Party controlled Senate to do likewise. Since the package is reportedly a compromise intended to satisfy the basic demands of each party, passage is possible but uncertain.

Politically. the Democrats have the maneuvered the Republicans into a corner and placed them in a position where they can be blamed for failure if the package does not pass the House vote. Failure, no matter who is to blame, places the US in a climate of financial uncertainty, which may imperial their fragile recovery as well as the financial health of those like Canada whose economy is entwined with that of the US.